- On the back of resurgent buyer demand, home prices in Nairobi and land costs in satellite towns around the capital have climbed to new highs.
- Land prices in Nairobi increased by 1.07 percent, while prices in satellite towns such as Kitengela and Juja increased by 7.35 percent.
- The cost of plots in the satellite towns increased at the fastest rate in five years, bringing back memories of the days when the property mania saw coffee plantations in Nairobi suburbs demolished to make way for gated housing estates and shopping malls.
Real estate was among the hardest-hit areas in the financial aftermath of the pandemic. Orders by new house purchasers declined because of pay and employment misfortunes, mindful loaning by banks, and financial backers deciding to keep their money close by as they braved the wave of vulnerability and uncertainty in the economy. The cost of housing in Nairobi and land in smaller municipalities around the capital ascended to new highs backed by reestablished requests from purchasers who had dialed back acquisitions at the height of Covid-19 financial difficulties.
According to data acquired from broker HassConsult, the average price of a home in the city grew by 6.8% in March, compared to a 1.8 percent reduction in 2021. This trend is the fastest growth rate since 2018, when it was 8.5 percent, demonstrating the property market’s rebound after the consequences of the Covid-19 pandemic.
Land prices in Nairobi increased by 1.07 percent, with a 7.35 percent increase in satellite towns such as Kitengela and Juja, compared to a 0.58 percent growth in March last year.
The cost of plots in the satellite towns increased at the fastest rate in five years, bringing back memories of the days when the property mania saw coffee plantations in Nairobi suburbs demolished to make way for gated housing estates and shopping malls.
As more people who lost jobs in 2020 return to work and businesses regain their footing, the economy’s recovery has helped property values rise. This recovery has given homebuyers the confidence to invest in real estate. Developers have been able to resume projects on hold owing to the possibility of a rental market recovery. House price increases have been relatively modest in Nairobi’s outlying towns since most residents prefer to build their own homes.
According to HassConsult, the increased demand for detached units, whose availability has decreased in the market over the last two decades, is driving the house selling market.
The average property price in Langata increased by 11.2 percent to Sh33.2 million, followed by 9.1 percent to Sh71.3 million in Spring Valley and 7.5 percent to Sh55.7 million in Loresho.
Runda home prices fell 2.5 percent to Sh93.3 million and Muthaiga 0.8 percent to Sh82.9 million. Infrastructure developments and limits have also played a role in the city’s rising land and housing prices.